Cornerstone Capital Inc. Acquires New Shares in The Home Depot, Inc. $HD

Key Points

• Cornerstone Capital acquired 81,328 Home Depot shares worth approximately $28.7 million in the second quarter, making HD its 15th-largest holding and 2.6% of its portfolio. Institutional investors collectively own 70.86% of the stock.
• Home Depot exceeded quarterly expectations, reporting $4.92 EPS and $47.86 billion in revenue, with revenue up 5.7% year over year. The company also declared a $2.33 quarterly dividend, equivalent to a 2.8% annualized yield.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $375.54, although some targets were reduced and concerns remain about margin pressure, cautious consumer spending and an insider share sale by the CFO.

Cornerstone Capital Inc. purchased a new stake in The Home Depot, Inc. (NYSE:HD - Free Report) during the second quarter, according to its most recent filing with the SEC. The firm purchased 81,328 shares of the home improvement retailer's stock, valued at approximately $28,683,000. Home Depot accounts for approximately 2.6% of Cornerstone Capital Inc.'s portfolio, making the stock its 15th largest position.

Other large investors have also made changes to their positions in the company. Advocate Investing Services LLC bought a new stake in shares of Home Depot in the fourth quarter worth about $25,000. Parvin Asset Management LLC raised its position in shares of Home Depot by 110.0% during the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer's stock worth $26,000 after purchasing an additional 33 shares during the period. Cache Advisors LLC bought a new position in shares of Home Depot during the 1st quarter valued at about $27,000. Merkkuri Wealth Advisors LLC acquired a new position in shares of Home Depot in the 1st quarter valued at approximately $28,000. Finally, Abound Financial LLC acquired a new position in shares of Home Depot in the 4th quarter valued at approximately $29,000. Institutional investors own 70.86% of the company's stock.

Key Home Depot News

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Home Depot’s latest quarter showed solid execution: earnings and revenue exceeded consensus estimates, while sales increased year over year. Bank of America characterized the results as resilient despite a difficult housing backdrop. Home Depot Q2 results analysis
• Positive Sentiment: The board declared a quarterly dividend of $2.33 per share, payable September 17 to shareholders of record September 3. The annualized payout implies a yield of approximately 2.8%, supporting the stock’s income appeal. Home Depot declares quarterly dividend
• Positive Sentiment: DA Davidson, Argus and Guggenheim reiterated or assigned “Buy” ratings, indicating continued confidence in Home Depot’s long-term positioning. The company is also expanding nationwide express delivery to make smaller projects more convenient for cautious consumers. DA Davidson buy rating Home Depot expands express delivery
• Neutral Sentiment: Royal Bank of Canada lowered its price target to $342, while KeyCorp maintained a Sector Weight rating. The mixed recommendations suggest limited near-term upside despite the earnings beat. RBC lowers Home Depot price target
• Neutral Sentiment: Home Depot expanded executive responsibilities and awarded restricted stock, changes intended to support leadership continuity but with no immediate earnings impact. Home Depot executive changes
• Negative Sentiment: Reports highlight margin pressure and an uphill sales environment as customers delay or reduce spending on major renovations. This could constrain comparable sales and profitability even after the recent quarterly beat. Home Depot margin pressure Home Depot customer spending concerns
• Negative Sentiment: CFO Richard McPhail sold 5,989 shares worth approximately $2.1 million, reducing his position by 11.1%. While insider sales do not necessarily signal deteriorating fundamentals, the transaction may weigh modestly on sentiment. Home Depot CFO stock sale

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on HD shares. Telsey Advisory Group dropped their price objective on shares of Home Depot from $435.00 to $410.00 and set an "outperform" rating on the stock in a report on Wednesday, May 20th. Bank of America began coverage on Home Depot in a report on Tuesday, May 5th. They set a "buy" rating and a $374.00 target price for the company. Stifel Nicolaus lifted their price target on Home Depot from $320.00 to $340.00 and gave the company a "hold" rating in a research note on Monday, August 17th. UBS Group dropped their price target on Home Depot from $430.00 to $420.00 and set a "buy" rating on the stock in a research note on Wednesday. Finally, Truist Financial boosted their price target on Home Depot from $369.00 to $373.00 and gave the company a "buy" rating in a report on Wednesday. Eighteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Home Depot presently has an average rating of "Moderate Buy" and a consensus price target of $375.54.

Insiders Place Their Bets

In other news, CFO Richard V. Mcphail sold 5,989 shares of Home Depot stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $348.40, for a total value of $2,086,567.60. Following the completion of the sale, the chief financial officer directly owned 48,104 shares in the company, valued at approximately $16,759,433.60. The trade was a 11.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 0.08% of the stock is owned by company insiders.

Home Depot Stock Performance

Shares of HD opened at $336.04 on Friday. The firm has a 50-day moving average of $340.86 and a 200-day moving average of $340.46. The Home Depot, Inc. has a one year low of $289.10 and a one year high of $426.75. The company has a market cap of $335.07 billion, a PE ratio of 23.52, a price-to-earnings-growth ratio of 3.68 and a beta of 0.95. The company has a debt-to-equity ratio of 2.64, a current ratio of 1.08 and a quick ratio of 0.28.

Home Depot (NYSE:HD - Get Free Report) last posted its earnings results on Tuesday, August 18th. The home improvement retailer reported $4.92 earnings per share for the quarter, topping analysts' consensus estimates of $4.73 by $0.19. Home Depot had a return on equity of 106.42% and a net margin of 8.41%.The business had revenue of $47.86 billion for the quarter, compared to analyst estimates of $47.24 billion. During the same period in the previous year, the firm earned $4.68 EPS. The firm's revenue was up 5.7% compared to the same quarter last year. Home Depot has set its FY 2026 guidance at 14.690-15.278 EPS. As a group, equities analysts forecast that The Home Depot, Inc. will post 14.99 earnings per share for the current year.

Home Depot Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 17th. Shareholders of record on Thursday, September 3rd will be paid a $2.33 dividend. The ex-dividend date is Thursday, September 3rd. This represents a $9.32 annualized dividend and a yield of 2.8%. Home Depot's payout ratio is 65.22%.

Home Depot Company Profile

The Home Depot, Inc NYSE: HD is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot's core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.

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